Bulgaria and Romania, the two poorest nations in the European Union, tried to bolster revenue by increasing excise taxes on cigarettes — with Bulgaria even reversing a national ban on smoking in cafes and restaurants. But their cigarette tax revenue, which accounted for approximately 10 percent of Bulgaria’s revenue last year, has actually decreased by almost a third so far, since smuggling cheaper cigarettes from neighboring countries has created a growing black market.
Bulgaria and Romania, the two poorest nations in the European Union, tried to bolster revenue by increasing excise taxes on cigarettes — with Bulgaria even reversing a national ban on smoking in cafes and restaurants. But their cigarette tax revenue, which accounted for approximately 10 percent of Bulgaria’s revenue last year, has actually decreased by almost a third so far, since smuggling cheaper cigarettes from neighboring countries has created a growing black market.